- VanEck submits a proposal for the first Lido Staked Ethereum ETF, offering exposure to stETH and staking rewards.
- The SEC will review the application under the new Generic Listing Standards, shortening approval timelines to 75 days.
- Lido DAO’s token (LDO) sees a 30% decline over the past week, despite the ETF filing.
VanEck has officially filed a preliminary application for a Lido Staked Ethereum ETF with the U.S. Securities and Exchange Commission (SEC). The move marks a significant step as the first-ever ETF proposal for Lido Staked Ethereum, coinciding with the implementation of new Generic Listing Standards. These standards, introduced earlier this month, allow for quicker approval timelines for crypto-related ETFs.
Key Details of the Lido Staked Ethereum ETF
The proposed ETF seeks to provide investors with both direction to Ethereum (ETH) and the staking rewards generated through Lido’s liquid staking protocol. Investors will gain exposure to stETH, a liquid staking token issued by Lido that represents staked ETH and staking yields. The ETF will track the spot price of stETH, using MarketVector’s Lido Staked Ethereum Benchmark Rate index.
Lido, one of the most popular decentralized finance (DeFi) staking platforms, currently holds 59.88% of the Ethereum staking market. As of the latest data from DeFiLlama, approximately 8.49 million ETH, worth over $33 billion, is staked through Lido.
SEC Decision and Timeline
The SEC now faces the task of reviewing VanEck’s filing. Under the new Generic Listing Standards, the review period for crypto ETFs has been shortened to 75 days, compared to the previous 240 days. This change aims to expedite the approval process for crypto-related financial products.
Lido’s dominant position in Ethereum staking is a key factor in this ETF proposal. The liquid staking protocol allows users to stake ETH without the need for running validator nodes. This has contributed significantly to its growth in the Ethereum ecosystem. While this marks a new step for crypto ETFs, the SEC has not yet confirmed when it will make a decision.
Lido Current Market Trend Revealed
At the time of press, Lido DAO’s token (LDO) is tracking a notable decline, down 30.11% over the past week, despite the announcement, with no positive trend evident.CoinMarketCap data shows that the token is valued at $0.8280, and its market cap is $741.73 million. The 24-hour price trading volume is at 171.94 million, which is a 3.7 percent reduction.
The total circulating supply of LDO is 895.78 million tokens, representing 89.578% of its total supply of 1 billion. With these changes, the token market cap to TVL ratio stands at 0.022555, meaning that the protocol is actively engaged in Ethereum staking. It is a recession that aligns with market trends encompassing DeFi projects and crypto assets.
